Correlation Between Japan Post and Independence Gold
Can any of the company-specific risk be diversified away by investing in both Japan Post and Independence Gold at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Japan Post and Independence Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Japan Post Holdings and Independence Gold Corp, you can compare the effects of market volatilities on Japan Post and Independence Gold and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Japan Post with a short position of Independence Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Post and Independence Gold.
Diversification Opportunities for Japan Post and Independence Gold
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Japan and Independence is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Japan Post Holdings and Independence Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Independence Gold Corp and Japan Post is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Japan Post Holdings are associated (or correlated) with Independence Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Independence Gold Corp has no effect on the direction of Japan Post i.e., Japan Post and Independence Gold go up and down completely randomly.
Pair Corralation between Japan Post and Independence Gold
Assuming the 90 days horizon Japan Post is expected to generate 2.1 times less return on investment than Independence Gold. But when comparing it to its historical volatility, Japan Post Holdings is 33.37 times less risky than Independence Gold. It trades about 0.5 of its potential returns per unit of risk. Independence Gold Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Independence Gold Corp on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Independence Gold Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 3.17% |
| Values | Daily Returns |
Japan Post Holdings vs. Independence Gold Corp
Performance |
| Timeline |
| Japan Post Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Independence Gold Corp |
Japan Post and Independence Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Post and Independence Gold
The main advantage of trading using opposite Japan Post and Independence Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Post position performs unexpectedly, Independence Gold can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Independence Gold will offset losses from the drop in Independence Gold's long position.| Japan Post vs. Huntington Bancshares Incorporated | Japan Post vs. Fifth Third Bancorp | Japan Post vs. MT Bank | Japan Post vs. Citizens Financial Group, |
| Independence Gold vs. Silver Hammer Mining | Independence Gold vs. Reyna Silver Corp | Independence Gold vs. Guanajuato Silver | Independence Gold vs. Silver One Resources |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |